Ethics Lessons From An Ethics Dunce, Ed Stack, Dick’s Sporting Goods CEO

Ed Stack, the CEO of Dick’s Sporting Goods, is profiled in Sunday’s New York Times. He reveals himself as a thorough Ethics Dunce on many fronts, but in doing so performs a valuable service by showing vividly why the world doesn’t work, or at least the United States.

  • Stack had an epiphany, we learn, after the shooting murders of 17 at the Marjory Stoneman Douglas High School in Parkland, Florida. “As Mr. Stack watched the news, he decided to drastically curtail Dick’s gun sales,” we learn.

This is management incompetence, and life incompetence as well. Stack employed pure emotion to make a business decision with unknown impact. Such business practices make an executive untrustworthy by definition.

  • Quote: “But I sat there hearing about the kids who were killed, and I hadn’t cried that much since my mother passed away. We need to do something. This has got to stop.”

More incompetence, and irresponsible as well. More than two years after deciding, based on a single unusual tragedy, that guns are bad, Stack’s level of criticism remains stuck at the “Do something!” stage. Of course, so is the anti-gun movement generally, making Stack an excellent symbol of its lack of policy seriousness and willingness to deal openly with reality. Continue reading

Saturday Ethics Warm-Up, 7/21/18: Seven Questions For A Rainy Day: UPDATED!

Good afternoon!

1. What did you expect? Following close on the heels of Scott Pruitt’s firing from the EPA as a result of blatant ethics violations, Commerce Secretary Wilbur Ross said last week that he would sell all of his stock holdings to “maintain the public trust” after the Office of Government and Ethics pointed out that his financial transactions could get him into legal trouble.

“I have made inadvertent errors in completing the divestitures required by my ethics agreement,” Ross said in a statement. “To maintain the public trust, I have directed that all of my equity holdings be sold and the proceeds placed in U.S. Treasury securities.”

To maintain that public trust. Right.

The culture of CEOs and business executives is so alien to ethics that this kind of thing was assured as soon as Donald Trump was elected President. I wouldn’t say the business culture is necessarily more unethical than the political culture, it is juts unethical different ways. However, President Trump brought this brand of malfunctioning ethics alarms with him, and we shouldn’t expect it to abate until he leaves the White House.

Then we will get back to the good old-fashioned political versions of unethical conduct we’re become numb to. Ah, those were the days!

2. A question of degree. Professor Brian McNaughton, a former professor at Colorado State University, is facing a felony charge for fabricating an outside job offer to get a higher salary. This meets the technical definition of fraud. Apparently he presented the school with fabricated offer letter from the University of Minnesota. McNaughton resigned his position and apologized, and returned the fruits of the ill-gotten  raise,  about $4,000 per year over four years.

He also says that he was urged to use the tactic by other faculty members, who said it was a standard ploy. When does the “I have other job offers” gambit cross the ethics line into fraud? Clearly when you use a forged letter, but short of that, it’s just lying—unethical, but not criminal.

Writes one idealistic commentator:

…if an employee is performing a job and is good at it, that person should be compensated for it accordingly and in line with individuals within the same organization at an equivalent level professionally (ideally pay should be bench-marked against similar-sized institutions in states or parts of the country with comparable income ranges). Does a job offer and the suggestion that the employee is desirable to another organization change how well that person is performing? Promotions and rewards should be directly related to performance and an individual’s contribution to the organization and to science.

Well, yes, but competition and reality interferes with this nice, fair but overly simplistic and impractical theory. In fields where employees are not fungible, basic economic theory comes into play: you can’t deny the influence supply and demand. The fact that there is competition for an individual’s services does increase that individual’s value. Just saying “it shouldn’t be that way” doesn’t change reality. That’s what makes McNaughton’s lie fraudulent: he’s misrepresenting his value, and using false means to do it.

3. Would you fire Dan Coats for this?

Naturally the anti-Trump mob loved it, and that was the director of national intelligence’s intent: he was playing to the mob and virtue signaling to the detriment of his boss. Either than, or he’s thoroughly unprofessional and can’t be trusted to be on TV. Washington Post reporter Dan Baltz is either foolish, naive or dishonest when he writes: Continue reading

From The “The Fish Rots From The Head Down” Files: The Uber CEO’s “Miami Letter”

You wonder why Uber has ethics problems?

This is why Uber has ethics problems.

Uber is being investigated by two law firms hired to make assessments regarding the corporate practices and culture at the ride-sharing giant, determine what created the toxic environment that led to sexism, sexual harassment, other unethical management conduct, and recommend remedial measures. Usually in such situations, the problem stems from unethical leadership. Guess what? Uber’s unethical conduct stems from not merely unethical leadership, but a leader with ethics alarms that have rotted into dust and rust.

The two law firms recently uncovered a 2013 e-mail sent to Uber’s staff by  CEO Travis Kalanick before a company outing in Miami.  Internally referred to as the “Miami letter,” this thing screams “What was he thinking?”, “Where were the lawyers?” and “This guy might get elected President of the United States!”

Here is the e-mail; I’m going to bold some important features: Continue reading

The United Ethics Train/Plane Wreck Sails On: A New, Worthless Apology, Ann Althouse Buys A Ticket, And More!

[ And yes, it is worth the attention it’s getting on an ethics blog. Greater ethical lessons and enlightenment can arise out of a transaction at a lemonade stand than in nuclear disarmament talks; this basic, establishing principle of Ethics Alarms still is elusive to many readers, and I don’t know what else I can say to explain it for them. Of course other things are going on: Bulletin: this isn’t a news site. No, the fact that Sean Spicer said that “Even Hitler didn’t use chemical weapons” and the news media, knowing full well what he meant (and that what he meant was technically correct, though still a jaw-droppingly cretinous thing to say) still turned it into a big deal —because he works for Donald Trump, and there for is evil—and Nancy Pelosi even said the it mandated his removal (no, the fact that Spicer is incompetent mandates his removal—“Best people,” Mr President? Remember “Best people”?—but we knew that) is not a more important ethics story.

I am seriously considering just banning every commenter who makes one of those “Why are you writing about this when children are dying in the Congo and Flint still has bad water?” complaints. Write your own damn blog. I have clients, a full time job and many other responsibilities, taught for four hours yesterday, and most of all, had a Red Sox game to watch. Istill posted about 2000 well-considered words. I am not your Ethics Monkey.]

Reports from the still accumulating United Flight 3411 ethics carnage:

Look! A new apology! United Airlines CEO Oscar Munoz performed a backflip and issued a brand new apology for the fiasco on United Express Flight 3411, and said in a statement;

The truly horrific event that occurred on this flight has elicited many responses from all of us: outrage, anger, disappointment.  I share all of those sentiments, and one above all: my deepest apologies for what happened. Like you, I continue to be disturbed by what happened on this flight and I deeply apologize to the customer forcibly removed and to all the customers aboard.   No one should ever be mistreated this way.  

I want you to know that we take full responsibility and we will work to make it right.    

It’s never too late to do the right thing. I have committed to our customers and our employees that we are going to fix what’s broken so this never happens again. This will include a thorough review of crew movement, our policies for incentivizing volunteers in these situations, how we handle oversold situations and an examination of how we partner with airport authorities and local law enforcement. We’ll communicate the results of our review by April 30th.  

I promise you we will do better.  

Sincerely, 

Oscar

Quick reactions:

….Well, I hope you will do better, because it would be almost impossible to do worse.

…Wait, I thought the United agents were following procedures and that this was all the fault of the “disruptive” passenger? Didn’t you say that? I’m sure I read that you said that…

…”Outrage, anger, disappointment”? When did Munoz express any of those? The word he used before was “upsetting.” In his previous “apology,” which extended to the passengers who were “re-accommodated,” a weasel word if there ever was one, since they were “un-accommodated’…

…Yes it is too late to do the right thing sometimes, and this apology is a perfect example.

If the soon-to-be-forcibly retired United CEO had issued this apology immediately, contemporaneously with  placing every involved employee in Chicago on leave until the matter was fully investigated, it would have been a #1 apology on the Ethics Alarms Apology Scale, the best of the best, the top of the line….

1. An apology motivated by the realization that one’s past conduct was unjust, unfair, and wrong, constituting an unequivocal admission of wrongdoing as well as regret, remorse and contrition, as part of a sincere effort to make amends and seek forgiveness.

However, when such an apology follows a previous apology that expressed none of this, but instead a reflex insistence that no wrong had been committed and that the victim of the wrong was at fault, the second apology becomes a #7 apology on the scale, one that is insincere and not a true apology at all:

7. A forced or compelled [apology], in which the individual (or organization) apologizing may not sincerely believe that an apology is appropriate, but chooses to show the victim or victims of the act inspiring it that the individual responsible is humbling himself and being forced to admit wrongdoing by the society, the culture, legal authority, or an organization or group that the individual’s actions reflect upon or represent .

Munoz’s second apology also insults the intelligence of everyone following the incident. We know what United’s attitude was: the United CEO expressed it:

“Be still peasants, and don’t scream like little girls when you get your comeuppance! We decide what your rights are! Next time, try walking to Louisville! I bet our surly representatives, cramped seats and stale pretzels will start looking pretty damn good before you get though Indiana.”

Now he’s suddenly horrified and contrite. Sure he is: he’s horrified because United stock is falling, and contrite because a public relations crisis management specialist told him to be.

Too late. We know what you really think, and we don’t forget that easily. Continue reading

More On United’s “Ethics Plane Wreck”

Ethics Alarms reader Arthur in Maine correctly declared that yesterdays’ multi-stage fiasco involving United Air Lines, an abused passenger and the police would be the first Ethics Alarms “ethics plane wreck.” He was correct.

Now we learn that the entire mess was based on a lie: this was no boating accid….sorry…the flight was not “overbooked.” United just decided at the last minute to fly a flight crew to Louisville, so it bumped four passengers against their will and lied, saying that the flight was overbooked. In addition to the policy-defying employees, and the brutal police, passengers on the United Flight 3411 Ethics Plane Wreck, which has spare seats aplenty, include

Recent passengers:

1. The United staff responsible for the fiasco added to their ethics foul with this official summary of the incident, cited by the United CEO:

Summary of Flight 3411

. On Sunday, April 9, after United Express Flight 3411 was fully boarded, United’s gate agents were approached by crewmembers that were told they needed to board the flight.

. We sought volunteers and then followed our involuntary denial of boarding process (including offering up to $1,000 in compensation) and when we approached one of these passengers to explain apologetically that he was being denied boarding, he raised his voice and refused to comply with crew member instructions.

. He was approached a few more times after that in order to gain his compliance to come off the aircraft, and each time he refused and became more and more disruptive and belligerent.

. Our agents were left with no choice but to call Chicago Aviation Security Officers to assist in removing the customer from the flight. He repeatedly declined to leave.

. Chicago Aviation Security Officers were unable to gain his cooperation and physically removed him from the flight as he continued to resist – running back onto the aircraft in defiance of both our crew and security officials.

Verdict: Dishonest, self-serving and misleading: Continue reading

The 8th Annual Ethics Alarms Awards: The Worst of Ethics 2016: The Last Of The Worst

how-lead-gets-injpg-1e9d798a1edee129

Ethics Alarms wraps up the Worst in 2016 Ethics with the usual education and journalism breaches, Ethics Dunce of the Year, and more delights for the sadistic…

Unethical Government Fiasco Of The Year

The Flint, Michigan water crisisA failure of competence, diligence, responsibility and honesty, compounded by bureaucrats, elected officials, the city of Detroit, Michigan Governor Rick Snyder and the EPA made people sick and cost billions.

Good job, everybody!

Scam of the Year

Sen.Ted Cruz’s fake “official” mailer before the Iowa Caucus. Cruz’s campaign  sent out mailers labeled in all capital letters, “ELECTION ALERT,” “VOTER VIOLATION,” “PUBLIC RECORD,” and “FURTHER ACTION NEEDED.” On the other side, the mailer said, in red letters at the top, “VOTING VIOLATION.” The text read:

You are receiving this election notice because of low expected voter turnout in your area. Your individual voting history as well as your neighbors’ are public record. Their scores are published below, and many of them will see your score as well. CAUCUS ON MONDAY TO IMPROVE YOUR SCORE and please encourage your neighbors to caucus as well. A follow-up notice may be issued following Monday’s caucuses.

This is why Trump’s nickname for Cruz, “Lyin’ Ted,” was crude but accurate.

Ethics Dunces Of The Year

All the social media users and others who ended Facebook friendships, genuine friendships and relationship over the 2016 election. Haven’t they ever seen “It’s A Wonderful Life”? Morons. Shame on all of them.

Weenies of the Year

The college students who demanded that exams be cancelled, therapists be available, safe spaces be found, puppies be summoned and cry-ins be organized because the awful candidate they supported in the Presidential election lost, as candidates often do.

How embarrassing.

Unethical University Of The Year 

Liberty University.  This is the most competitive of categories, with all the schools that railroaded male students based on questionable sexual assault claims while quailing in fear of the Dept. of Education’s “Dear Colleague Letter,” and all the schools that signaled that the results of a simple election justified PTSD treatment for their shattered charges, as well as making it clear to any students who dared to tilt Republican that they were persona non grata. Nonetheless, Liberty University takes the prize with its unique combination of greed, hypocrisy, and warped values. From the Ethics Alarms post:

Last week, with great fanfare, Liberty hired Ian McCaw as its new athletic director. “My vision for Liberty is to position it as a pre-eminent Christian athletic program in America,” McCaw said during a news conference.

This is his first paying assignment since May, when he left his job as the athletic director at Baylor, also a Christian university. His departure was made essential after a thorough investigation that found that those overseeing Baylor’s  football team as well as the management of  the athletic department—that is, McCaw— had been informed of multiple gang rapes and sexual assault by team members and had ignored it, as any good football-loving Christian would….especially when a star was involved.

Continue reading

I Suppose It Is Comforting To Know That I Wasn’t Unfair To Starbucks And Howard Schultz

Starbucks Quiz

If the Starbucks “Race Together” campaign had turned out to be carefully thought out, intelligent, sophisticated and responsible, and not  a facile, condescending and cynical effort to promote a brand while creating static and white noise in the midst of an important cultural discussion, I would be obligated to apologize for doubting CEO Howard Schultz’s wisdom and ethics. It would also have been an apology I would have enjoyed making.

Sadly, I was not only correct in my assessment that this was a fiasco in the making, I was more correct than I suspected. Above is the “Race Relations Reality Check ” quiz that Starbucks has reportedly been distributing. The questions indicate a bottom-of-the-well level of comprehension about race and racism, not to mention demographics, culture and the human species. It appears that Starbucks favors some kind of affirmative action program on personal friendships, and believes that one can measure racism or incipient bias by how many individuals of other races one has regular contact with. I don’t even want to have a discussion with someone this shallow. A whole corporation this shallow is a nauseating thing to contemplate. A corporation this shallow that presumes to lead a national discussion on race is, oh I don’t know—Risible? Sad? Dangerous?

Starbucks seems to be thinking like George Costanza, during the period where he was trying to acquire black friends and managed to annoy and insult every African-American he met. The presumptions here are staggering, and so directly contrary to life, logic and the realities of human existence that i get angry just reading them. I was at an ethics conference in Nigeria, and met some of the most intelligent, charming, passionate people I have ever encountered in my life. I would be honored and enriched to have any of them in my life, and would hope that I could develop close friendships with them—but I can’t, because I live in the U.S. and they live in about 15 African nations, and it’s just too darn expensive to dine at each others’ homes. I live in an area, Northern Virginia, that is overwhelmingly white, not because it is white, but because it is convenient to my work and we found a great deal on a house. I work in two fields, theater and ethics, that do not afford a lot of contact with African Americans. The last time we had anyone other than immediate family to dinner was a decade or more ago; the last time anyone other than family, black or white, had us to dinner was longer ago than that—and I am a delightful dinner companion. Continue reading

Ethics Observations on Starbuck’s “Put Your Customer On The Spot” Program

Race together

Beginning this week, Starbucks baristas will have the option of handing coffee cups to customers on which the Starbucks employee has written the words “Race Together” as an invitation to start a discussion about race in America. Friday, each copy of USA Today will have the first of a series of insert with information about race relations, including a variety of perspectives on race. Starbucks coffee shops will also stock the insert.

Good golly Miss Molly. Where to begin? Continue reading

Dear Discovery Channel: Fire Paul Lewis, Or You Will Regret It. Trust Me On This.

The Discovery Channel’s president, Paul Lewis, approved a promotional campaign for the rapidly rotting cable channel’s “Shark Week” that included a fake video, shown above,  intended to “go viral” and convince people that there are sharks in Lake Ontario. After the video prompted the Ontario Minister of Natural Resources  to warn swimmers and anxiety over the shark sighting was expressed in social media, the channel’s ad agency admitted that it was hoax. Some people still don’t believe it’s a hoax, however, because they’ve seen “Jaws.” After all, claiming a real sighting is a hoax to save the tourist season is just the sort of thing Amity Mayor Larry Vaughn would do, right?

Or that equally slimy Paul Lewis would do. Here is his despicable, ethics-free “apology”:

“We didn’t want it to be something that would negatively impact people’s summer…It’s unfortunate that some people took what we did so serious. If we upset anybody, of course I apologize for that. It would be totally counterproductive for us to go out there and upset and disturb our audience.”

First of all, how does someone become president of a communications company who uses “serious” like that? Continue reading

Strange Tales Of The Ethically Clueless 1%: When A Birthday Gift Is Worse Than No Gift At All

"Oh, thank you, kind sir!"

“Oh, thank you, kind sir!”

The title of Ethics Dunce doesn’t do Fort Wayne Newspapers CEO Mike Christman justice.

In order to “celebrate” his employees’ birthdays, and, of course, recognize his loyal staff’s value, hard work, industry and loyalty, he gives each member of his corporate family a small token of his  appreciation on his or her birthday, and I do mean small token: a $1.25 token that can be used to buy a soda or a snack at a company vending machine.

How condescending, demeaning, disrespectful, insulting and, of course, cheap: the equivalent of a pat on the head. In the Gilded Age, rich men would occasionally drop nickles on the street for the street urchins to pick up. John D. Rockefeller was the most famous practitioner of this form of low-level charity, though he would use dimes. During the Depression, though he was still a billionaire, he switched to nickels. (Nickels in the Great Depression were worth a lot more than $1.25 today.) His beneficiaries were children, however. Continue reading